1. Service Contract Profitability Installed base ( NASA/ERAF)2011 = 543 Total systems under Service Contract 2011 = 120 Average Service Contract Selling Price (estimate) USD 15,000 Vevo 770 PMTUSD $14, 500€12,000 Vevo 2100 PMTUSD $19,600 €16,200 Total Service Contract Revenue~$2.7M Total Service Costs~1.3M – Travel (est) $500,000 – Parts (est)$800,000 Profitability48%

2. Service Contract Projection

3. Field Service Team Located in USA Based in Pittsburgh ( 2HE)and Atlanta (1HE) to save travel costs Toronto to Boston ~$1200 Pittsburgh to Boston ~$300 Coverage area:North America and Europe VevoLAZR Demo: Japan, Korea, Australia Typical week: 3-4 customer visits per week per person Rotate long trips with short trips to minimize travel fatigue Installations: Cost of installation trip paid by new customer (COGS)and invoiced with new system order Schedule additional PM’s in same geographical area to manage travel costs ~125 installations year 3 installs/week *50 weeks = 1 HE Preventative Maintenance (PM’s): Schedule PM’s by same geographical area and/or on same flight connection route ~165/year Service: Schedule PM’s in same local area to managed travel costs if possible Recently added remote Dial-In capabilities for remote diagnostics

4. Europe Unique servicing situation: – 36 or 72 hour visitor restrictions in most UK site, due to strict animal care protocols – This restriction limits the number of Service calls per trip – Fly to Europe via London Heathrow and complete one PM in London ( Flights ~$2000) – Combine PM Service with one or more installations – Trained Local Field Service to do PM’s » UK 10-15 PMT Contracts Neil Watts » Italy 1-2 Contracts Alberto Losi » Germany Zero contracts Erwin Dingeldey ( Restricted availability due to illness)

5. European Installations and PM’s Installation Planned for June Install Munich: Customer paid € 2,300 Install Vienna: Customer paid € 2,300 PM visit ( UK):Service Contract €12,000 (Stop over in UK on trip to Europe) REVENUE€16,600 Costs €3000 PM Europe Recent Trip PM ( Contract) EPFL Lausanne Switzerland€ 16,200 PM (Contract) Novartis Switzerland€ 16,200 PM ( Contract) Genethon, Paris, France€ 12,000 PM(Contract)University of Bordeaux, France€ 16,200 REVENVUE€60,600 Costs €3000

6. North American PM Service Call Philadelphia – 7-9 systems – Completed 7 PM’s in one week – Revenue ( 7*$14,500) $101,500 » Costs Airfare $300 » Hotel/meals (5*150)$750 » Total Costs$ 1,050

7. Worst Case European system down Complete boards set$18000 Shipping$ 500 Travel(Airfare, Hotel, Meals) $ 3000 $ 21,500

8. REPORTING REVENUE – Service Contract Revenue by Sales Region EXPENSES – Service Contract Expenses by Sales Region PARTS – Service Contract Parts costs ( net of repair/ rework) Suggestion : – Create a new business process in Oracle for Service Contract Activity – Add new Service Projects to Concur/Prophix Field Service Installation (NASA/ERAF) Field Service (PMT) Service Contract Field Service Repair Field Service Billable Field Service Warranty Field Service Other (Marketing)